Ripple has unveiled a sweeping upgrade to its institutional DeFi strategy on the XRP Ledger (XRPL), signaling a new era of on-chain finance for regulated markets.
The announcement, highlighted by Cointelegraph, details a roadmap packed with fresh compliance tools, expanded tokenization standards, and a forthcoming native lending protocol—positioning XRPL as a top destination for institutional capital.
Strong Growth in Institutional Activity
Ripple reports that the XRPL recently surpassed $1 billion in monthly stablecoin volume, underscoring its rising importance among real-world asset (RWA) blockchains. The ledger now ranks within the global top ten for RWA activity, supported by low transaction costs and high throughput.
This momentum sets the stage for a more sophisticated ecosystem designed to meet institutional requirements.
⚡️ JUST IN: Ripple unveils next phase of institutional DeFi on XRPL with $1B+ stablecoin volume, live compliance tools, and an upcoming native lending protocol. pic.twitter.com/nTkd0uJElC
— Cointelegraph (@Cointelegraph) September 22, 2025
New Compliance Framework
To meet regulatory compliance, Ripple introduced three key features. Credentials, powered by decentralized identifiers, allow issuers to verify attributes such as KYC status or investor accreditation. Deep Freeze gives issuers the ability to halt transfers from sanctioned or suspicious accounts. Simulate provides a sandbox for testing transactions before they get to the live network.
These tools work together to strike a balance between blockchain transparency and the strict regulatory oversight required in traditional finance.
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Native Lending and Enhanced Tokenization
A cornerstone of the roadmap is a native lending protocol, planned for release with XRPL Version 3.0.0 later in 2025, pending validator approval. This protocol will enable pooled lending and on-chain credit facilities while keeping risk assessments partly off-chain for efficiency.
Ripple is also advancing its Multi-Purpose Token (MPT) standard, which supports detailed metadata—such as transfer restrictions or maturity terms—without requiring complex smart contracts. This upgrade simplifies the creation of tokenized assets ranging from bonds to structured products.
Privacy Through Zero-Knowledge Proofs
To reconcile confidentiality with compliance, Ripple intends to integrate zero-knowledge proofs (ZKPs). Confidential MPTs, slated for early 2026, will enable financial institutions to manage collateral and conduct audits without revealing sensitive transaction details, a crucial feature for handling large capital flows.
By combining regulatory-grade compliance, privacy innovation, and built-in credit markets, Ripple’s plan positions the XRP Ledger as a formidable platform for institutional DeFi. If successfully implemented, these upgrades could firmly establish XRPL as a global hub for tokenized finance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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